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HomeMy WebLinkAbout2021 11-08 CCM Regular SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION NOVEMBER 8, 2021 VIA ZOOM 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Milce Elliott at 6:45 p.m. IZ�7�11[N:�I111 Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, City Engineer Mike Albers, Community Development Director Meg Beekman, City Clerk Barb Suciu, and City Attorney Troy Gilchrist, Mayor Mike Elliott opened the meeting for Informal Open Forum. Diane stated she is aware of a purchase of property for a liquor store for the City in 2021. She asked if the public would be given information about the location and the project before the end of the year. City Manager Reggie Edwards stated Staff will provide more information on that. Community Development Director Meg Beekrrian stated she does not anticipate that an acquisition will take place in 2021. It was a goal of theirs to complete this year, but she does not believe it will take place this year. Diane asked if the public could provide input or comment on the property acquisition before it goes through. Mayor Elliott stated he believes that is something that would normally allow for public input. Dr. Edwards stated it is something that has already been presented to and approved by Council. Mayor Elliott asked if something on the matter will come before the Council again. Dr. Edwards stated once they are ready to move forward with a site, the information will come back to the Council. Matt stated he is reaching out as a concerned small business owner due to the lack of safety for his employees. For the last several months, they have had a difficult time maintaining employees due to safety. He asked for an update from Council on measures they are taking to address shoplifting, car thefts, and public shootings to better support and retain small business employees. 11/08/21 -1- Councilmember. Ryan stated Informal Open Forum is not a time for problem -solving. He asked Matt to provide information about his business. Matt stated he would prefer not to share the name of his business, but he explained his business is in the realm of retail and has about 35 employees. He added he has had problems maintaining more than 25 employees due to safety concerns. CouncilIII ember Ryan asked if any of Matt's employees had been threatened. Matt c1nfii111 d his employees have been threatened multiple times. He added there was a shooting in the parking lot a few weeks ago which resulted in three employees leaving for that incident alone. He explained he cannot ask them to work there because their safety is at risk. Matt noted he has had to hire security, but he cannot afford to do that every day of the week. He added it is not a sustainable may of keeping his employees safe. Matt stated there is not a lot of help offered when he calls to A for help and that concerns him as a small business owner. Matt asked if there are any updates on how the City is trying to keep employees safe. Mayor Elliott stated they will follow up with him on that. Matt stated it has gotten so much worse and the unsafe environment is out of control. He added COVID49 is the least of his staffing concerns. Councilmember Graves stated she is very sorry that his employees feel unsafe. She stated the best action step would be to reach out directly to one of the Councilmembers or Staff to problem -solve with him in a different setting. She added she might have a few ideas to improve the situation. Mayor Elliott moved and Councilmember Ryan seconded to close the Informal Open Forum at 5:56 p.m. Motion passed unanimously. Mayor Elliott called for a short recess of the meeting at 6:56 p.m. The meeting was reconvened at 7:00 p.m. with all in attendance. �. INVOCATION Mayor Elliott shared a quote by Paul Wellstone, "Politics is about the improvement of people's lives. It's about advancing the cause of peace and justice in our country and the world. Politics is about doing well for the people." 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Mike Elliott at 7:01 p.m. 4. ROLL CALL Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence - Anderson, and Dan Ryan. Also present were City Manager Reggie Edwards, City Engineer Mike Albers, Community Development Director Meg Beekman, City Clerk Barb Suciu, and City Attorney Troy Gilchrist. 11/08/21 -2- 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Lawrence -Anderson moved and Mayor Elliott seconded to approve the Agenda and Consent Agenda, and the following consent items were approved: 6b. APPROVAL OF MINUTES 1. October 18, 2021 2. October 25, 2021 3. October 25, 2021 4. October 25, 2021 - Joint Council/Financial Commission - Study Session Meeting - Regular Session Meeting - Work Session Meeting APPROVAL OF LICENSES MECHANICAL Climate Tech LLC Deschene Enterprises, Inc. Friendly Home Services Inc. Total Home Solutions RENTAL INITIAL (TYPE III —one year license) 5144 Ewing Avenue N. INITIAL (TYPE II —six-month license) 5924 Dupont Avenue N. 5524 Humboldt Avenue N. 6924 Scott Avenue N. 6931 Toledo Avenue N. 6218 Unity Avenue N. RENEWAL (TYPE IV —six-month license) 5338-40 Queen Avenue N. 7001 Emerson Avenue N. 14702 Excelsior Blvd Minneapolis, MN 55407 21725 Linden Way Rogers, MN 55374 11792 272nd Ave NW Zimmerman, MN 55398 10)8 Prospect Pointe Rd Jordan, MN 55352 Koff Yeboah/Gracelands LLC Jonathan Miller Devon Youngblood/Larkin Street Homes LLC Joseph Florczak/HPA US LLC Joseph Florczal</HPA US 1 LLC Ishmael Komara Thanh Kim Oan Mara Jenson/Moses Gibson 11/08/21 -3- 6424 Girard Avenue N. 5739 James Avenue N. 7156 Unity Avenue N. RENEWAL (TYPE III —one year license) 1600 71st Avenue N. 6107 Bryant Avenue N. 5310 Knox Avenue N. 5642 Logan Avenue N. RENEWAL (TYPE II —two year license) 5351 Irving Avenue N. 5636 Irving Avenue N. 4007 Joyce Lane RENEWAL (TYPE I —three year license) 1113 73rd Avenue N. 5325 Newton Avenue N. 4734 Twin Lake Avenue N. SIGNHANGER Electro Neon & Design Inc JDI Signs &Graphics, LLC TOBACCO Burr Si iviarkei Casey's General Stores Kabalan Co Leng Ku 6c. Olufemi Sowemimo/Livewell Home Care LLC Douglas Wahl/Riiive Investments LLC Michelle Shaffer FYR SFR Borrow LLC Daniel Yesnes Douglas Wahl/Cel Ponton LLC MNSFII Wl LLC Douglas Wahl/Cel Ponton LLC Bruce Goldberg in Jorgenson Mary Ellen Carroll EE & J Investment Inc Elizabeth Becht 1680 99th Lane NE Blaine, MN 55449 6451 McKinley Street NW, Suite P Ramsey, MN 55303 dba Quick Shop 5808 Xerxes Avenue N Brooklyn Center, MN 55429 dba Casey's General Store #3823 2101 Freeway Boulevard Brooklyn Center, MN 55430 dba Pump N Munch 1505 69th Avenue N Brooklyn Center, MN 55430 dba Sun Foods 6350 Brooklyn Boulevard Brooklyn Center, MN 55429 RESOLUTION N0.2021-135 ESTABLISHING 2022 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES 11/08/21 -4- 6d. RESOLUTION NO. 2021-136 ESTABLISHING INTEREST RATE OFR 2022 SPECIAL ASSESSMENTS 6e. RESOLUTION NO. ZO21-137 DECLARING COSTS TO BE ASSESSED AND CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR IMPROVEMENT PROJECT NO. 2022-019 WOODBINE AREA STREET IMPROVEMENTS 6f. RESOLUTION N0.2021-138AMENDING SPECIAL ASSESSMENT LEVY ROLL NOS, 21001 AND 21002 TO PROVIDE FOR THE DEFERRAL OF SPECIAL ASSESSMENTS 6g. RESOLUTION NO. 2021-139 AUTHORIZING THE CITY MANAGER TO WRITE-OFF UNCOLLECTIBLE ACCOUNTS RECEIVABLE AND RETURNED CHECKS 6h. AN ORDINANCE 2021-04 AMENDING CHAPTER 23 TO ALLOW AND REGULATE SPECIAL EVENTS AND RESOLUTION 2021- 140ACKNOWLEDGING THE FIRST READING OF THE ORDINANCE 6i. RESOLUTION NO. 2021-141 APPROVING THE CONTRACT FOR THE LABOR AGREEMENT FOR LAW ENFORCEMENT LABOR SERVICES, INC. (LELS NUMBER 86) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEARS 2022-2024 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. HIGHWAY 252/I-94 ENVIRONMENTAL IMPACT STATEMENT (EIS) UPDATE Dr. Edwards introduced the topic and invited City Engineer Mike Albers to make the staff presentation. City Engineer Mike Albers stated the City is partnering with MnDOT, Hennepin County, the City of Brool�lyn Center, and the City of Minneapolis on an Environmental Impact Statement for the Highway 252/I-94 corridor from Highway 610 in Brooklyn Park to 4th Street in Minneapolis. The project partners will use the EIS to gain a better understanding of safety and transportation needs in the area and take a closer look at how a potential construction project could affect the environment surrounding Highway 252 and I-94. This includes the people, plants, animals, water, air, roadways, buildings, and other structures in the area. The project is currently in the Scoping phase and MnDOT has retained SRF Consulting Group, Inc. to provide transportation planning, engineering, and environmental expertise. Mr. Albers invited Chris Hoberg to continue the presentation. Chris Hoberg, West Area Engineer with the Minnesota Department of Transportation, provided an overview of the presentation. Mr. Hoberg explained they heard concerns and requests from Council regarding the project, and they have made sure to integrate those items into the project. 11/08/21 -5- He noted the Council's request for the project to benefit the City and not just stakeholders beyond the City's borders. It was agreed upon that it was important to hear about health equity and its impacts. Additionally, Council had requested a presentation on traffic flow in the region around Brooklyn Center to better understand the origin and destinations of traffic and to understand how Brooklyn Center plays a role in the regional transportation system. He stated they have been trying to reach people where they live rather than inviting people to a distant venue. Knowing that pop- up events are effective, they have been preparing for more public meetings and hosted an event this fall. Mr. Hoberg acknowledged multimodal solutions are important. Mr. Hoberg noted Brooklyn Park is eager to remove stoplights and build interchanges at Broolcdale Drive and 85th and, without removal of the signals, they will continue to have crashes. He added safety and functionality of the roadway are of the utmost importance to both the Council and the Minnesota Department of Transportation. Council had asked about the air quality impacts of converting Highway 252 to a freeway, and Mr. Hoberg agreed environmental is a concern for both the Council and the Minnesota Department of Transportation. Regarding the mission statement or purpose statement, they would like to see a statement that addresses reducing emissions, improving health, and improving racial disparities. Mr. Hoberg stated they have the tools in place to help them understand that and aid in reaching a solid decision. One of the key reasons they want to go through the process is because success is measured by increased safety and not increasing poor air quality concentrations. They must look at the impacts and benefits of any proposed project. Craig Vaughn, representing Transportation Collaborative and Consultants, LLC, stated the Environmental Impact Statement process is currently expected to span through the year 2024. They are currently in the scoping decision document phase that should last through Summer 2022, which is looping at a host of improvements across the corridor and potential alternatives. Mr. Vaughn explained the technical project analysis project includes four steps of action. Step one includes identifying project improvements, and they are currently on step two, which is combining project improvements to develop a list of project alternatives. Step three determines which alternatives should be studied further in the draft Environmental Impact Statement, and step four reviews the draft Environmental Impact Statement and determines if there is a preferred alternative. Mr. Vaughn stated they have had community engagement updates since the last meeting. They have expanded the Environmental Impact Statement 101 video library, completed two rounds of open house engagement, continued to host ongoing pop-up meetings, and done targeted outreach to faith -based, African, and African American communities. The expanded Environmental Impact Statement 101 video library includes an overview of the project, an explanation of why Highway 252 and I-94 are being studied, the relationship between the two roadways, what design changes are being considered, and what the design changes mean for traffic patterns in Brooklyn Park, Brooklyn Center, and Minneapolis. Mr. Vaughn stated the June 2021 open house series included 99 total attendees, 86 total live comments, and 96 inline comments. They heard various comments from the community they are taking into consideration. It was suggested they can improve the roadway without building a freeway and they could consider an overpass and underpass at 66th Avenue instead of a full interchange to improve safety. There were concerns about air pollution and increased traffic 11/08/21 -6- posing safety risks to the community. Additionally, the open house addressed questions about timelines. Mr. Vaughn explained the October 2021 open house included 177 attendees, 134 live comments, and 13 comment cards. Comments included questions about why the project was taking so long and why traffic will shift to local roads. Residents expressed concerns about the freeway negatively affecting property values and current safety issues, such as running red lights, that are not being enforced. Some people also commented they want to see signals removed and freeway options considered but noted they need to figure out interchange locations and traffic shifts to local roads. Mr. Vaughn stated there was a significant amount of pop-up engagement, meaning engaging with people where they are at. As of a week before the presentation, there had been 962 total impressions. One comment expressed the desire for funding to go towards transit and bikeways rather than freeway expansion. Another shared they would like to get rid of signals and they like the six -lane grade -separated freeway. Community members also said it was encouraging to see the government out at an event and noted it was much better than doing focus groups on the topic. Mr. Hoberg stated the Equity and Health Assessment is underway, and the Equity and Health Neighborhood Advisors, a neighborhood advisory group, has met twice. He explained the focus is on equity, health, and transportation. Community characteristics they are considering include demographic measures, built environment, health status, and health disparities. Transportation systems and mobility include travel behavior, pedestrian and bicycle infrastructure, public transit systems, and overall safety. Mr. Hoberg noted there is also a focus on community input and engagement. Mr. Hoberg stated they wanted to highlight workforce initiatives. The benefits of a maj or highway project are not just limited to a safer highway, but also connecting people to the investment. Heavy highway construction tries to connect people to the trades, and forethought is required to train people before the project begins. He explained it could be from now until the project is built. The maintenance pathway is another potential career option hired by the Department of Transportation. Lastly, the Minnesota Department of Transportation has an internship program and a student worker program to connect folks in the science, technology, engineering, and math fields to projects. Mr. Hoberg noted they have consistently been asked how they are addressing safety concerns. The project team has heard from the public at previous engagement events that they would like to see improvements made now to Highway 252 to address safety concerns. Minnesota Department of Transportation and its partners are currently investigating interim safety improvements to Highway 252 that could be implemented before major project construction in 2027. Minnesota Department of Transportation will release a report summarizing potential interim safety improvements. Mr. Vaughn explained the next significant community engagement will include additional information on the relationship between speed and safety and a refined set of alternatives with a discussion of access, pedestrian and bicycle crossing locations, transit stations, and physical impact considerations. Spring of 2022 will be the official public comment period as part of the scoping 11/08/21 -7- decision and Environmental Impact Statement process. He noted there is continued business stakeholder outreach. Mr. Vaughn noted there is always information available on the project website, and there is the opportunity to share comments by visiting the project website contacts tab. Additionally, there is an option to receive email updates to stay involved in the process. Councilmember Lawrence -Anderson stated she looks forward to hearing about public safety measures they can take in the interim as this project is still a few years out from being implemented. Councilmember Butler thanked the presenters for engaging with the community in several ways. She noted the videos are very helpful. Councilmember Ryan stated he has had his questions answered by the team and noted his appreciation for the online resources. He stated he concurs with Councilmember Lawrence - Anderson about interim safety measures. Councilmember Graves agreed with the comments of other members of the Council. She is excited to hear about the work for interim safety such as flashing lights to wain of an upcoming red light. Mr. Hoberg confirmed flashing lights is one of the options they are in the process of evaluating. Councilmember Graves asked how long that process may take. Mr. Hoberg stated the timeline depends on the outcome of the report. He explained they will want to come back and discuss the Findings, but there is the desire to implement things as soon as they can. Jerome Adams, Minnesota Department of Transportation Proj ect Advisor, stated he plans to report to the policy advisors in January 2022. From there, they will see if they can do construction in 2023 if they identify something to do. Councilmember Graves stated she appreciates the information on the career pathways programs. She stated it might be helpful to communicate those opportunities to communities that do not usually receive such information. Options for outreach include Surrunit Academy and Job Corps. Mr. Adams stated they have a plan to connect people to jobs, and the next step they are working on its implementation. Implementation means doing targeted outreach starting in 2022 and yearly through 2027 to explain the job opportunities that exist and connect people to those opportunities. Mayor Elliott noted his excitement that they are addressing the air quality and potential health implications for the community. This all has to do with the historical nature of transportation. He added it is welcome news to hear about the level of community engagement and the interim mitigation strategies. Mayor Elliott asked if the project is committed to decreasing air pollution. Mr. Adams stated there is not a specific commitment to that, but they do study air pollution and its changes based on projects. Councilmember Ryan moved and Councilmember Graves seconded to accept the presentation Highway 252/I-94 Environmental Impact Statement Update. Motion passed unanimously 11/08/21 -8- 7b. MARKET TRENDS AND DEMAND OVERVIEW Dr. Edwards introduced the item of market trends and demand overview and invited Ms. Beekman to make the staff presentation. Ms. Beekman stated in 2019, the City worked with Kimble Company to take ahigh-level look at market demand and regional market trends affecting Brooklyn Center. The study was initiated as part of several initiatives focused on understanding the available land in the City and how best to target development on them. The high-level market study considered the Opportunity Site area, the former Sears site, and the Brooklyn Boulevard Corridor. Ms. Beekman noted the study was intended to be presented to the Council in early 2020 but was postponed as a result of the pandemic and the City pivoted to focus on other areas of concern. Given a renewed interest from developers on various sites in the City, Kimble Company was asked to update their study and provide their expertise regarding where the market is currently heading and what types of development are more probable than others. Julie Kimble will present her findings and will be available to answer any questions that the Council may have. Ms. Beekman explained Staff is seeking to provide information to the Council to assist with design making in the future in regards to development sites. The presentation is designed to be fairly high level. The Council will have an opportunity to identify if there is additional information they would like more detail on, which can be provided as part of a future and ongoing discussion. Julie Kimble of KimbleCo stated the purpose of the presentation is intended to provide a summary update of commercial real estate market information to assess realistic opportunities for development and redevelopment throughout Brooklyn Center now and in the near term. She summarized the agenda of the presentation. Ms. Kimble stated she founded the company KimbleCo in 2014 and it is afull-service commercial real estate firm. They have developed and leased over six million square feet of commercial real estate and include principals with over 65 years of diverse real estate experience locally, nationally, and globally. Ms. Kimble added she is the chair of the Roseville Planning Commission, Ms. Kimble explained KimbleCo was a member of a consultant team in 2019 and 2020 that performed a variety of scope for Brooklyn Center. This work helped to inform this market update. At that time, they assessed the retail, office & multifamily markets in Brooklyn Center resulting in two reports, a Market Review, and a Redevelopment Analysis. The study was focused on redevelopment sites along Brooklyn Boulevard therefore industrial was not included. The purpose of the study was to provide a view into opportunities for development that were grounded in market A She noted it is easy to create wonderful visions for sites but another to make them happen. The analysis focused on opportunities that supported job and revenue growth in the city, provided resources for residents, and developments that could happen now and shortly based on current market fundamentals. Ms. Kimble stated industrial space is in high demand. Development potential is high almost anywhere due to the strong underlying real estate fundamentals in the market and the demand for products and services of essential businesses, and vacancy is low across the entire Twin Cities 11/08/21 -9- market at 4.2% with 15 million square feet of demand in the market. Rents are increasing due to principles of supply and demand. Brooklyn Center's current inventory is a mix of traditional office warehouses and flex/R&D and has a slightly higher vacancy than the market overall, possibly due to the fact much of its product is older. Ms. Kimble explained office/warehouse space is typically N feet clear in height or more and use is usually 20 percent for office and 80 percent for retail. Distribution requires a ceiling clear height of more than 28 feet with a very small office component. Lastly, flex/R&D/office showroom can be lower clear ceiling heights with closer to 40 percent office use and 60 percent warehouse use. Other industrial product types may include truck terminals, cross docks, cold storage, and self -storage. Ms. Kimble stated national institutional investors and owners are interested in the Twin Cities market and noted some now control large portfolios and are driving rents and annual escalations up. Numerous speculative industrial developments have recently been announced and the economics for industrial easily supports such new developments. There is a higher percentage of local owners in comparison to institutional or national owners of industrial buildings in the Brooklyn Center market. Ms. Kimble noted this may change with the development of a newer product. Ms. Kimble added industrial likes access to freeway infiastructure. Cities and residents typically prefer that industrial production is not located in proximity to residential and retail centers but planned for areas set aside and zoned specifically as industrial centers due to the scale of buildings, truck traffic, and general operations. She explained current economics are strong, and incentives should not be necessary unless there are extenuating circumstances such as necessary environmental clean-up. Ms. Kimble stated in thinking about the industrial market, they must consider if flex product works in areas with commercial or residential adjacencies. This could drive up the number of new jobs and present smaller -scale buildings that can work more easily with commercial and residential adj acencies. If not flexible, then developers should commit to a minimum level of office finish to drive jobs. They additionally could consider if there is an opportunity to target and attract destination entertainment use such as brewery, interactive sporting with food & beverage, roller- skating, or other features as a part of the industrial tenant mix and does zoning allows this. They would need to ensure the different types of uses can coexist and query whether the Twin Cities is nearing its limit of breweries and distilleries. Ms. Kimble noted if there is a development agreement be careful to include important items such as minimum finish levels or creation of jobs standards, goals for tenant mix or specific market voids, pay careful attention to design standards, require minimum standards, especially to commercial, residential and high traffic -facing adjacencies, materials, require buffers as needed, pay attention to lighting zones, hours of operation if residential and commercial adjacencies, incorporate good site planning such as green space, pedestrian connections to nearby amenities, connections to city trail and or other city amenities as appropriate, and to ensure the property is well lit to enhance safety and security. Ms. Kimble explained opportunities for industrial sites include a higher office component creating more job capacity, quality of jobs is typically higher than retail, and market demand is strong, and 11/08/21 -10- industrial is likely to thrive. Potential challenges are that industrial spaces require a large footprint and typical facades are a challenge if commercial or residential adjacencies, need to manage truck traffic, light & noise, and, if higher warehouse usage in comparison to office, job counts are reduced. Ms. Kimble stated the current retail vacancy in Brooklyn Center is 8.7% greater than the rest of the Twin Cities. Lease -up of existing space and development of available pad sites in the city has been slow. Additionally, current rental rates do not support new construction except for single - tenant, standalone projects. Lenders will require substantial pre -leasing for multi -tenant buildings, the speculative product will be nearly impossible to finance. As always, retailers are laser -focused on demographics, now more than ever due to the impact of the pandemic and the competition with online shopping. Additionally, daytime population to support retail is key. Ms. Kimble explained Brooklyn Center cannot just consider city boundaries but must look at larger retail trade areas to understand opportunities. This is especially important as there is considerable competition with relative nearby retail trade centers such as Maple Grove. This is even more important as retailers are reducing the number of bricks and mortar stores placing them further apart than they used to. Developers have extensively targeted national retailers including grocery and entertainment venues unsuccessfully. Primary reasons include demographic mix, too close to other operations, and just simply they are not expanding. A high percentage of tenants and building ownership are local — there is not a strong track record of investment by national or institutional investors/owners which usually is not a positive signal for developers. Some cities, to attract retail uses have invested in substantial subsidies with no promise of future success. Ms. Kimble stated considerations for retail spaces include asking how the city helps guide retail and zoning such that there is long-term success, where retail centers belong and now does this play into the many sites available in the City, and what concentration of retail needs to be located in the Opportunity Site to make that a success. They need to consider if there is an opportunity to target and attract destination entertainment use such as brewery, interactive sporting, food and beverage, roller-skating, or other attraction as a part of the tenant mix, even in a light industrial property and if zoning would allow this. Ms. Kimble added they should assess if there is an opportunity for a project such as a market, be it small scale, clustered, or niche retail, or food hall concept for locally -owned retailers along with how much of this type of retail can realistically be supported and on what site should it be located. The City must also consider if it can have long-term success. Before any city investment, considerable research should be done. For example, Midtown Market on Lake Street has had ups and downs and has had to pivot numerous times even though it is located in a prime location with good demographics to support the concept and significant day and nighttime population. As an alternative to encourage locally -owned retailers, the City can consider if vacant and unused storefronts are used as an economic development tool. It is possible City subsidies create a lower barrier to entry such as to "white -box" the space and assist with tenant improvements or to write down some of the rent. This fills existing, vacant space and provides opportunities for new and emerging businesses. Finally, they must incorporate good site planning such as green space, pedestrian connections to nearby amenities, the city trail system, and or other city amenities as 11/08/21 -11- appropriate. Ms. Kimble added they should make sure the site is well -lit to enhance safety and security. Ms. Kimble stated offices are cur7ently a bit of a dismal space. Current rental rates do not support new construction except for single -tenant, stand-alone projects. Brooklyn Center rents and sales over the last five years are below the market averages. Known cap rates for sales are 8.0% and above representing market risk and reducing developer returns impacting decisions to invest. Ms. Kimble explained the pandemic has greatly influenced office use and the future of the office is evolving. Because of this as well as increasing vacancies and considerable sublease space on the market, development has paused. Build to suit, for lease or ownership can be designed to a budget that fits for a business, however, competition is high for these sites, likely requiring city subsidy. However, the pandemic has put almost all thought of this type of development on hold for now due to changing workplace policies such as hybrid and remote work. Ms. Kimble noted lenders will require substantial pre -leasing, speculative products will be nearly impossible to finance. A smaller footprint, office condo project, carefully designed to meet the market, with a competitive land purchase may be able to be developed with little to no subsidy or redeployment of vacant storefionts as suggested in the retail overview. She added developer owners must be capitalized upfront to fund tenant improvement allowances and transaction fees that are typical in the market. Additionally, emerging developers of small office properties must be well -capitalized and prepared for these costs to have long-term success. Ms. Kimble stated, along with industrial, multifamily is the current darling of development and investment. Despite considerable new construction over the past four years, market fundamentals remain healthy and there is room for more development in many communities. Even with higher construction pricing and delayed access to some materials, the market fundamentals remain strong supporting new development. The passing of rent control policies in St. Paul and Minneapolis will likely drive development to the suburbs. ivis. Kimble explained ilrere continues io be insufficient affordable housing and in many communities a need for "missing middle" housing such as duplex and triplex properties both for rent and for ownership. Brooklyn Center is starting to fill this gap with some of its newer developments along Brooklyn Boulevard. Demand for missing middle housing is high and the regional housing shortage is driving costs up. Brooklyn Center is competing for projects with other suburban communities. Ms. Kimble noted that missing middle housing also is a key driver to retain existing residents that are at retirement age and wish to downsize and remain in the community. Ms. Kimble noted the capital stack for affordable housing continues to be a challenge with limited pools of funding which can cause long delays in development starts and the requirement for local subsidies remains. Some communities, such as Brooklyn Center, need to update and add market - rate apartments to diversify and expand their housing mix. Given the lower rents in this market and rising construction costs, the subsidy is likely required in the current market, particularly if there is structured parking. According to the Met Council, Brooklyn Center will add over 2,200 new households over the next 20 years. 11/08/21 -12- Ms. Kimble stated industrial and multi -family are the strongest contenders. The City has great sites available for development and redevelopment. Yet, the market for development in any one area is not unlimited and there is at some point a finite amount of supply for the demand. Given this, development may occur later on some sites as market fundamentals improve for asset classes such as retail and office. Ms. Kimble stated the City should consider where they could take advantage of current opportunities for development such as the need for industrial products. The City plays an important role in guiding land use across the City. Given the available land, the city will need to be strategic about land planning so that developments and sectors can thrive once built. What uses work best for the Opportunity Site and what works best for the Sears site or Brooklyn Boulevard, for example. Additionally, Ms. Kimble noted the Council should consider which types of developments have more success being near other types of "like" development such as retail concentrations or how commercial amenities are positioned to provide live -work -play environments. Ms. Kimble stated they should consider guiding industrial uses to one area of the city and concentrate multi -family, service retail, and community gathering spots to one area to create vibrancy and a sense of place. As much as possible keep industrial uses away from densities of housing and highly trafficked pedestrian locations. Given current land availability in the city, this may mean directing light industrial and jobs -based opportunities to the Sears site and malting sure the city has a well -documented agreement with the developer to ensure the site and design standards and minimum requirements for job creation. Ms. Kimble explained the City must aslt how the City attracts and diversifies its multifamily mix, perhaps a balance of marltet-rate and affordable worltforce and often missing middle housing such as townhomes. Office space is currently in tremendous flux due to the pandemic. However, well - placed office condo products may support the incubation of Brooklyn Center's existing and new entrepreneurs or unused and vacant storefronts can be used to support local business growth. The development of a product with healthy underlying market fundamentals should eliminate or greatly A educe the need for city subsidy thereby positively impacting the city's revenue. Ms. Kimble noted they should consider encouraging locally -owned retailers by using economic development tools to fill unused storefronts. This fills existing, vacant space and provides opportunities for new and emerging businesses. She recommended incorporating requirements into developer agreements that ensure they get what was promised and to achieve a project that will enhance the community and meet city goals. Mayor Elliott stated some communities are being developed that have home storefronts. Some time ago, some neighborhoods had houses but were able to have storefronts attached to them or the lower level of it. He asked if that is a strategy Ms. Kimble was aware of. Ms. Kimble stated that is not something she is aware of in any great density. She stated Minneapolis and St. Paul have opportunities for sorts of neighborhood -places businesses such as Grand Avenue. However, she is not aware of a suburban area that has been able to accomplish that. 11/08/21 -13- Ms. Beem an stated they have been looking at codes and zoning, specifically in the Brooklyn Boulevard corridor area. She stated the potential rezoning allows for a transition between the corridor and neighborhoods, and they want to be mindful of the transition. The zoning would allow for single-family homes along Brooklyn Boulevard to be used for commercial or mix -used purposes. Ms. Beekman explained they made that distinction because those structures are already there and it may make sense for owners of the homes to convert the spaces to businesses. She added there are a couple of cities that have a similar type of zoning and referenced downtown Hopkins and Grand Avenue in St. Paul as two examples. Mayor Elliott stated the method makes sense especially in light of the pandemic driving people to work from home. Councilmember Lawrence -Anderson asked if Ms. Kimble had any examples of what businesses to avoid surrounding the Opportunity Site with. Ms. Kimble stated the City should be careful about what they put around the site. When a city wants space to be for gathering and community, then they have to be carefully surround it with industrial spaces. If industrial were to be in the mix, it would have to be very carefully planned. While they want vibrancy in terms of product mixes, she would be hesitant to introduce buildings with high degrees of industrial space into the area that would primarily serve for purposes of retail and housing. Councilmember Lawrence - Anderson stated much of Brooklyn Center's housing stock is considered affordable and noted she appreciates Ms. Kimble's data related to that type of housing. Councilmember Butler stated she believes they need a greater range of housing stock in Brooklyn Center. She asked how they do that without pricing out people currently in homes. Ms. Kimble asked for Councilmember Butler to clarify her question. Councilmember Butler stated she believed Ms. Kimble recommended they have both affordable housing and market -rate housing as they are developing the City. Councilmember Butler asked how they introduce the higher -end options without pricing people out of their homes because it would impact taxes for people already living in more affordable options. Ms. Kimble stated she isn't sure she can answer the question off the cuff. She stated she is not sure it would impact them because there is a need for more housing in the community, and she doesn't believe introducing market -rate housing would impact single-family homes due to the current market. She stated she will thinic about that more and share any future thoughts on the topic with Ms. Beekman. She added it is beneficial to attract competitive -rate housing. Councilmember Ryan stated Ms. Kimble highlighted the fact that speculative -industrial development is desirable given a suitable site location because it would be attracting higher -paying jobs than retail. He asked if that is analogous to building more market -rate family housing that they are also attracting more households with more disposable income. Ms. Kimble stated industrial is an opportunity due to current supply and demand. She explained there is less industrial space and there are more users in the market. The pandemic has proven that essential businesses are here to stay and necessary. Councilmember Ryan stated it seems that if they have more market -rate housing in a community like Brooklyn Center where the multi -family rentals are below average for the Twin Cities area, it would ultimately attract more families with more disposable income. Household incomes in Brooklyn Center have trended down, so the notion raises concerns about the City's future financial liability if that individual income trend continues. He noted one of the Council's goals is to address 11/08/21 -14- economic inequity, but one of the ways to approach that could be market -rate opportunity housing as it may bring more disposable income into the City and drive the local economy. Ms. Kimble stated she agrees everything Councilmember Ryan has said makes sense and is accurate, but she is not sure how it relates to industrial development. Councilmember Ryan stated the market recognizes the need for industrial spaces which would bring in more higher -paying jobs than retail. Councilmember Graves stated the presentation was very informative. She noted there seems to be space for industrial development. Although it is unappealing for her, she explained it can be helpful in terms of job creation and taking on a larger burden of the tax base. Councilmember Graves stated it is interesting the current industrial spaces are locally owned and yet those owners aren't upgrading and trying to stay current. She noted they could potentially be better supporting them as she wants to prioritize supporting and leveraging local businesses. Councilmember Graves added the idea of using smart zoning stood out to her. She stated she likes the idea of a marketplace concept, but they need to be careful about how they build and support that. Councilmember Graves added the presentation caused her to think about the spaces off of Highway 280 where there have been both restaurants and industrial uses. She noted she likes the idea of an anchor space. Councilmember Graves stated if there is something they could be doing to better support the empty storefronts, then the Council needs to be doing that. She added she would like more information about supporting local businesses and current vacancies. Ms. Kimble stated it always makes sense to think about maximizing what is already there and considering why the space is vacant. She explained the idea of the storefronts is a concept as there has not been a study done. She noted it could be a strip mall or a single storefront, and it could be a way to promote entrepreneurship and give local entrepreneurs a jumpstart. Mayor Elliott moved and Councilmember Ryan seconded to accept the presentation Market Trends & Demand Overview. Mayor Elliott asked if Councilmember Graves meant to reference Highway 100 instead of Highway 280. Councilmember Graves stated she meant Highway 280 because she grew up in St. Paul. She clarified she was thinking about the Como area and the feel of those neighborhoods. 8. PUBLIC HEARINGS None. 9. PLANNING COMMISSION ITEMS None. 10. COUNCIL CONSIDERATION ITEMS 10a. AN ORDINANCE 2021-05 AMENDING CHAPTER 12 OF THE CITY CODE OF ORDINANCE REGARDING TENANT PROTECTION AND RESOLUTION NO. 11/08/21 -15- 2021-142 ACKNOWLEDGING THE FIRST READING OF THE ORDINANCE Dr. Edwards introduced the item and then invited Ms. Beekman to continue the staff presentation. Ms. Beekman stated this has been developed over multiple work sessions. City Staff has had multiple discussions with the City Council relating to affordable housing policies and programs. The City is currently working with the Center for Urban and Regional Affairs and Research in Action on a citywide housing study. It is a priority to support current residents without alienating them. That work is completed its engagement phase and is anticipated to be completed in early 2022. The deliverables from the study will be used to complete a Housing Policy Action Plan to address the housing priorities in the city. Staff is anticipating moving forward with programs and policies based on the results of that study. However, Brooklyn Center and the Twin Cities region are facing continued and extremely low vacancy rates. Estimates show the region will be short by 40,000 housing units by 2040, so there is a desperate need for new housing. Ms. Beekman showed a slide with a map depicting ten core -based statistical areas with the lowest vacancy rates. According to a recent 2020 Census Report, the Twin Cities has the lowest vacancy rate among the 30 largest U.S. cities. She noted this disparity promotes the power gap as there are Fewer choices for renters. Ms. Beekman noted Staff has been worlung closely with the City Attorneys office to draft an ordinance relating to tenant protections. This ordinance was created to include multiple areas of concern from tenants such as just cause non -renewal, pre -eviction notices, maintenance fees, damage deposits, material changes to the lease, and discrimination relating to public assistance status. Based on the current low vacancy rates and the urgency created by the phasing out of the pandemic's eviction moratorium, Staff thought it to be necessary to expedite the tenant protection ordinance relating specifically to items addressing displacement, particularly evictions and non - renewals. Putting anti -displacement measures into effect sooner rather than later is intended to get ahead of a growing problem and provide renters with more leverage in their negotiations with landlords. Ms. Beekman stated there are three provisions addressed in the ordinance. The first is a pre - eviction filing notice which requires 30 days written notice before filing an eviction. The timeline would allow the tenant to be notified of imminent eviction and for the tenant and landlord to come to some sort of understanding or agreement such as fixing a behavior. Another benefit is this process could help tenants avoid receiving a negative mark on their record for receiving an eviction, which makes future rental more difficult down the line. Evictions would be restricted to non-payment of rent or material breach of the lease. Ms. Beekman explained the ordinance also includes a just cause non -renewal which establishes requirements that prevent a property owner or property manager from non -renewing an existing tenant lease without just cause. Non -renewals have been used instead of evictions to eliminate less desirable tenants. She added they have seen more property maintenance violations in recent years, so they know that is a concern for tenants. Just causes for non -renewals would include non- payment of rent, material noncompliance, refusal to renew, occupancy by the property owner or Family member, building demolishing or conversion, rehabilitation or renovation, complying with 11/08/21 -16- a government order to vacate, or occupancy conditioned on employment. The landlord would have to provide evidence for which cause resulted in the non -renewal. Ms. Beelunan stated another provision includes private enforcement where a tenant or former tenant of an affordable housing unit harmed by an owner in violation of this ordinance may bring an action again the owner in district court. A waiver is not allowed by a tenant to waive their rights under the new ordinance. This would allow people to remedy violations that have occurred. Ms. Beekman stated the Brooklyn Center Housing Commission meet on October 5 and discussed the proposed tenant protection ordinance. The Housing Commission received feedback from multiple Housing Advocacy Groups including African Career, Education, and Resource, HomeLine, and the Housing Justice Center as well as numerous Brooklyn Center tenants. It was strongly recommended from all agencies and tenets to expedite and approve the ordinance specifically relating to evictions and non -renewals. Further, the Housing Commission has unanimously approved a recommendation to approve the proposed ordinance before the Council. Ms. Beelunan explained the recommended action is to approve the first reading of the ordinance at the current meeting and hold a public hearing with a second reading at a later date. She added they have been working with housing advocacy groups and a couple of the partners are present at the meeting to answer any questions. City Attorney Tony Gilchrist stated the actual action would be to adopt the Resolution approving the first reading. Mayor Elliott noted he was very proud of the work Staff has done to develop the ordinance. Councilmember Graves stated if the Council is open to it, perhaps they could open the floor to the public for comment. Mr. Gilchrist stated the Resolution was to approve the first reading and to set a public hearing to include a second reading, so there is a formal hearing that will be held on December 13. He explained they could still open public comment that evening if Council would like. Mayor Elliott stated he would recommend taking comments from Council first then consider opening the floor for public comment. Councilmember Ryan stated he can appreciate the public's comment, but he would like to recognize the ordinances that promote effective time management for the Council. Considering they have a work session, he recommended they leave the public comment for the public hearing on December 13, 2021. Councilmember Ryan added he appreciates the spirit.of the ordinance. Mayor Elliott agreed it was getting late. Councilmember Graves stated she would agree to limit the discussion of the topic by the public until a later date. Councilmember Butler thanked everyone who had a hand inputting together the ordinance. Mayor Elliott added they have heard from many residents that this type of policy is desperately needed. As noted by Ms. Beekman, the condition has been made worse due to the pandemic. Mayor Elliott 11/08/21 -17- explained he has heard from the public that there are evictions used as retaliation for requesting basic maintenance. Mayor Elliott moved and Councilmember Graves seconded to adopt RESOLUTION NO. 2021- 142 approving the first reading of an Ordinance 2021-05 Amending Chapter 12 of the city code of ordinances regarding tenant protections and hold a public hearing and second reading to be held on December 13, 2021. Motion passed unanimously. 11. COUNCIL REPORT None. 12. ADJOURNMENT Mayor Elliott moved and Councilmember Graves seconded adjournment of the City Council meeting at 9:37 p.m. Motion passed unanimously. STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brool�lyn Center, MlrincOULa, UCrtrilt s: 1. That attached hereto is a full, true, and complete transcript of the minutes of a Regular Session of the City Council of the City of Brookyn Center held on November 8, 2021. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its November 22, 2021, Regular Session. City Clerk 11/08/21 -18-